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IdahoH 04362025 regular legislative sessionHouseWALLET

URBAN RENEWAL – Amends and adds to existing law to provide for the dissolution of urban renewal agencies and termination of urban renewal plans and to allow fire protection districts and ambulance service districts to opt out of certain urban renewal financing provisions.

Sponsored By: REVENUE AND TAXATION COMMITTEE

Signed by Governor

URBAN RENEWAL

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

District withdrawals change property tax calculations

Counties use current equalized assessed values to calculate tax rates for fire and ambulance districts exempt from or withdrawing from financing. They no longer use the financing area’s base values for that calculation. In the withdrawal year, districts may add 80% of the area’s value above its base to their new construction roll. In later years, they may add 90% of qualifying new construction’s taxable value, even inside the financing area. These rules expand available tax-base growth but do not set a household’s tax bill.

Fire and ambulance districts can withdraw

Fire and ambulance districts can leave urban renewal financing plans adopted before July 1, 2025. Covered debts cannot exceed the district’s share of allocation proceeds measured on December 31 of the prior tax year. Districts must request a county accounting by May 1 and adopt and send an intent-to-withdraw resolution by June 1. The agency can accept by resolution or deny in writing based on debt. Required resolutions must reach the county and Idaho State Tax Commission by the fourth Monday of July for next-fiscal-year withdrawal; otherwise, withdrawal takes effect the following tax year.

Fire and ambulance districts control participation

For urban renewal financing areas created or modified after July 1, 2025, fire and ambulance districts must agree to participate. The municipality must request consent when sending notice of its intent to create or change the plan. The district must approve consent by resolution and file it with the municipality within 10 business days. The municipality then has 10 business days to send it to the county clerk and Idaho State Tax Commission. This controls local tax funding, not a specific household tax amount.

Municipalities can end urban renewal operations

Municipalities can dissolve an urban renewal agency after sending an intent resolution, meeting jointly, and finding it is no longer needed. The resolution bars new projects and financial obligations except for winding down; dissolution takes effect upon publication, and agency property returns to the municipality. The ordinance must be recorded, with copies sent to required officials within 10 business days after recording. Agencies can end financing plans by their scheduled end date; municipalities can start early termination by resolution and finish by ordinance. That resolution bars new financing-backed obligations except for termination, and agencies generally have 60 days after receipt to submit a termination plan.

Local districts gain budget growth exceptions

Beginning January 1, 2025, specified property-tax revenue increases do not count toward the usual 8% budget-growth limit. This covers revenue added when an urban renewal financing area ends, loses territory, or changes its plan. It also covers revenue added after a qualifying taxing district withdraws. Districts gain budget room, while the 8% limit no longer restrains these additions. The law does not set a specific household tax increase.

Sponsors & Cosponsors

Sponsor

  • REVENUE AND TAXATION COMMITTEE

    Affiliation unavailable

Cosponsors

  • Jason A. Monks

    Republican • House

  • No sponsor data.

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 85 • No: 20

Senate vote • 4/3/2025

Senate Floor Vote

Yes: 28 • No: 7

House vote • 3/31/2025

House Floor Vote

Yes: 57 • No: 13

Actions Timeline

  1. Reported Signed by Governor on April 4, 2025 Session Law Chapter 300 Effective: Retroactive to 01/01/2025

    4/4/2025

  2. Delivered to Governor at 10:36 a.m. on April 4, 2025

    4/4/2025

  3. Returned Signed by the President; Ordered Transmitted to Governor

    4/4/2025Senate

  4. Signed by President; returned to House

    4/3/2025Senate

  5. Received from the House enrolled/signed by Speaker

    4/3/2025Senate

  6. Reported Enrolled; Signed by Speaker; Transmitted to Senate

    4/3/2025House

  7. Returned from Senate Passed; to JRA for Enrolling

    4/3/2025House

  8. Rules Suspended (2/3 Vote - Read in full as required) – PASSED - 28-7-0

    4/3/2025Senate

  9. Read second time; filed for Third Reading

    4/3/2025Senate

  10. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    4/2/2025Senate

  11. Introduced, read first time; referred to: Local Government & Taxation

    4/1/2025Senate

  12. Received from the House passed; filed for first reading

    4/1/2025Senate

  13. PASSED - 57-13-0

    3/31/2025House

  14. Read Third Time in Full – Motion to send to Gen Ord, motion failed

    3/31/2025House

  15. U.C. to hold place on third reading calendar until Monday, March 31, 2025

    3/28/2025House

  16. U.C. to hold place on third reading calendar one legislative day

    3/27/2025House

  17. Read second time; Filed for Third Reading

    3/26/2025House

  18. Reported out of Committee with Do Pass Recommendation, Filed for Second Reading

    3/25/2025House

  19. Reported Printed and Referred to Revenue & Taxation

    3/21/2025House

  20. Introduced, read first time, referred to JRA for Printing

    3/21/2025House

Bill Text

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